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Guangzhou Video Star Intelligent Co (BJSE:870976) Gross Margin % : 54.57% (As of Sep. 2024)


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What is Guangzhou Video Star Intelligent Co Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Guangzhou Video Star Intelligent Co's Gross Profit for the three months ended in Sep. 2024 was ¥33.7 Mil. Guangzhou Video Star Intelligent Co's Revenue for the three months ended in Sep. 2024 was ¥61.7 Mil. Therefore, Guangzhou Video Star Intelligent Co's Gross Margin % for the quarter that ended in Sep. 2024 was 54.57%.


The historical rank and industry rank for Guangzhou Video Star Intelligent Co's Gross Margin % or its related term are showing as below:

BJSE:870976' s Gross Margin % Range Over the Past 10 Years
Min: 28.1   Med: 37.27   Max: 52.92
Current: 52.92


During the past 9 years, the highest Gross Margin % of Guangzhou Video Star Intelligent Co was 52.92%. The lowest was 28.10%. And the median was 37.27%.

BJSE:870976's Gross Margin % is ranked better than
89.8% of 2422 companies
in the Hardware industry
Industry Median: 24.655 vs BJSE:870976: 52.92

Guangzhou Video Star Intelligent Co had a gross margin of 54.57% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Guangzhou Video Star Intelligent Co was 6.30% per year.


Guangzhou Video Star Intelligent Co Gross Margin % Historical Data

The historical data trend for Guangzhou Video Star Intelligent Co's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Guangzhou Video Star Intelligent Co Gross Margin % Chart

Guangzhou Video Star Intelligent Co Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Gross Margin %
Get a 7-Day Free Trial Premium Member Only 38.25 39.18 40.31 37.27 43.46

Guangzhou Video Star Intelligent Co Quarterly Data
Dec18 Jun19 Dec19 Jun20 Sep20 Dec20 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 52.16 53.13 52.99 51.11 54.57

Competitive Comparison of Guangzhou Video Star Intelligent Co's Gross Margin %

For the Electronic Components subindustry, Guangzhou Video Star Intelligent Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Guangzhou Video Star Intelligent Co's Gross Margin % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Guangzhou Video Star Intelligent Co's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Guangzhou Video Star Intelligent Co's Gross Margin % falls into.



Guangzhou Video Star Intelligent Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Guangzhou Video Star Intelligent Co's Gross Margin for the fiscal year that ended in Dec. 2022 is calculated as

Gross Margin % (A: Dec. 2022 )=Gross Profit (A: Dec. 2022 ) / Revenue (A: Dec. 2022 )
=100.7 / 231.733
=(Revenue - Cost of Goods Sold) / Revenue
=(231.733 - 131.024) / 231.733
=43.46 %

Guangzhou Video Star Intelligent Co's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=33.7 / 61.673
=(Revenue - Cost of Goods Sold) / Revenue
=(61.673 - 28.017) / 61.673
=54.57 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Guangzhou Video Star Intelligent Co  (BJSE:870976) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Guangzhou Video Star Intelligent Co had a gross margin of 54.57% for the quarter that ended in Sep. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Guangzhou Video Star Intelligent Co Gross Margin % Related Terms

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Guangzhou Video Star Intelligent Co Business Description

Traded in Other Exchanges
N/A
Address
3rd Floor, Building 5, Guangzhou Science and Technology Park, No. 9 Lanyu 4th Street, Huangpu District, Guangdong Province, Guangzhou, CHN
Guangzhou Video Star Intelligent Co Ltd is a company engaged in production, manufacturing and sales of smart home, video intercom and other intelligent equipment and LCD screens and module solutions for global high-end residential and commercial spaces. The company's main products and service items are Smart home, video intercom and LCD screen and modules.

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